Each year between January and April, Los Angeles residents observe a marked increase in local on-location filming. New television pilots, produced in anticipation of May screenings for television advertisers, join continuing TV series, feature films and commercial projects in competition for talent, crews, stage 6255 W. Sunset Blvd. CREDITS: space and sought-after locations. 12th Floor Research Analysts: Hollywood, CA 90028 Adrian McDonald However, Los Angeles isn’t the only place in North America Corina Sandru hosting pilot production. Other jurisdictions, most notably New Graphic Design: York and the Canadian city of Vancouver have established http://www.filmla.com/ Shane Hirschman themselves as strong competitors for this lucrative part of @FilmLA Hollywood’s business tradition. Below these top competitors is FilmLA Photography: a second-tier of somewhat smaller players in Georgia, Louisiana Shutterstock and Ontario, Canada— home to Toronto.

FilmL.A.’s official count shows that 202 broadcast, cable and digital pilots (111 Dramas, 91 Comedies) were produced during the 2014-15 development cycle, one less than the prior year, TABLE OF CONTENTS which was the most productive on record by a large margin. Out of those 202 pilots, a total of 91 projects (21 Dramas, 70 WHAT’S A PILOT? 3 Comedies) were filmed in the Los Angeles region. NETWORK, CABLE, AND DIGITAL 4

FilmL.A. defines a development cycle as the period leading up to GROWTH OF DIGITAL PILOTS 4 the earliest possible date that new pilots would air, post-pickup. DRAMA PILOTS 5 Thus, the 2013-14 development cycle includes production COMEDY PILOTS 5 activity that starts in 2013 and continues into 2014 for show THE MAINSTREAMING OF “STRAIGHT-TO-SERIES” PRODUCTION 6 starts at any time in 2014 (or later). PILOTS’ ECONOMIC IMPORTANCE 9 TOP PILOT PRODUCTION LOCATIONS 9 While this is the fourth largest annual tally in Los Angeles’ SERIES VS. PILOT PRODUCTION LOCATIONS 10 history, it was 10 fewer than L.A. handled during its peak year of 2004-05. In terms of overall market share, L.A. captured just 45 RUNAWAY SERIES PRODUCTION 12 percent of all pilots in the current cycle, marking the second year THE CURRENT DRAMA SERIES LANDSCAPE IN L.A. 14 in a row that L.A.’s share fell below 50 percent. CONCLUSION 15

2 WHAT’S A PILOT? For more than a decade, FilmL.A. has conducted ongoing primary and secondary research to keep track of new television pilots. Our counts include all pilot projects of which FilmL.A. is made aware through primary and secondary research, and for which a primary production location was verified.

FilmL.A. uses the word “pilot” throughout this study to refer to all original scripted pilots, shorter- length presentations or “hidden pilots” captured during the development cycle. Pilot counts within a development cycle include both stage-based and location-based projects made in any location, of any running duration, intended for primetime debut on either broadcast or cable networks serving U.S. audiences. Original web series are included for this analysis, but animated pilot productions are not counted.

Networks may choose to skip pilot and presentation production and immediately “green light” promising new shows for series production. Rather than discount new production occurring anywhere within the development cycle, FilmL.A. includes the first episode of these “straight-to- series” productions as “hidden pilots” in all of its counts.

Total Pilots Produced in N.Y. and Atlanta 2008-2015 L.A.’S SHAREL.A.’s OF TOTALShare PILOTS of Total PRODUCED Pilots Produced

35 1.0 100%

30 80% 0.8 81% 82% 25 71% 68% 60% 0.6 61% 20 59% 57% 51% 52% 15 45% 0.4 40% 44%

10 0.2 20% 5

0 0.0 0% 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Digital Pilots vs. Network and Cable Pilots 250 For FilmL.A. Research, determining what should be counted as a “pilot” seems to grow more difficult Network & Cable with each passing year. For example, one of the pilots tracked this year was for the NBC© series Heroes: Reborn, a continuation of the originalL.A.’s NBC show ShareHeroes, which of ran Total from 2006 Drama to 2010. Pilots Produced Should the pilot for the “new” show, from the same studio and showrunners that will air on the same 200 Digital Digital Network Share of Pilot Activity 192 176 network be counted as a pilot or 80is the new series just an extension of the prior run on the same 178 15 network? The same could be said of the reboot the NBC sitcom Coach or Fox’s™ forthcoming X-Files, which is a limited-run series70 that is a continuation of the original series that aired on Fox 150 from 1993 to 2002. Given the length of time between the original series and these “new” reboots, 151 60 63% 12 FilmL.A. has elected13% to count them as pilots produced for the new runs. 50 100 9 Another wrinkle in classifying pilots has been the significant50% increase in the number of limited-run or so-called “event” series that are not40 intended to last more than a single season. If a single season of episodes is aired for a series that, in fact, doesn’t return for subsequent38% seasons, it would be38% akin 6 to a true mini-series like Roots, Lonesome30 Dove or Stephen King’s IT. A true mini-series is a wholly 50 29% separate category5% of production that should fall outside the scope of a pilot study. The25% problem with 3 4% 20 1 26 these limited or event series is that they sometimes can and do return for multiple seasons with an 22% © 19% 11 indefinite rather than limited run. For example, ABC’s Agent Carter was conceived as a “limited” 17% 0 8 .6% 10 2011-12 2012-13 2013-14 2014-15 0 series that would end after eight episodes. However, in early 2015, producers announced that a 2011-12 second2012-13 season2013-14 was2014-15 possible; in May,0 the show was ordered to a second season of 13 episodes. FilmL.A. included Agent Carter in last year’s 2006-7pilot report2007-8 and will2008-9 continue2009-10 to include2010-11 the first 2011-12 2012-13 2013-14 2014-15

Top Pilot Locations episodes of “event” or “limited run” projects in our studies while this trend persists. 200

Los Angeles’ Share of Pilot Spending Comedy Pilot Locations 8 9 50 3 150 6 17 16 15 3 6 8 46% 7 10 5 4% 8 2 40 1 100 87 92 96 90 91 8% 39% 30 4% 30% 31% 50 12 20 9 9 7 5 70% 17 20 19 35 25 0 2010-11 2011-12 2012-13 2013-14 2014-15 10

Toronto 0 2011-12 2012-13 2013-14 2014-15 2014-15 Vancouver

Louisiana Oregon

Los Angeles South Carolina

Atlanta North Carolina

New York Chicago Total Pilots Produced in N.Y. and Atlanta 2008-2015 L.A.’s Share of Total Pilots Produced

35 1.0

30

0.8 81% 82% 25 Total Pilots Produced in N.Y. and Atlanta 2008-2015 L.A.’s Share of Total Pilots Produced 71% 68% 35 1.0 0.6 61% 20 59% 30 57% 52% 51% 0.8 81% 82% 15 25 45% 44% 71% 0.4 68%

0.6 61% 20 59% 10 57% 51% 52% 15 45% 0.2 0.4 44% 5 NETWORK, CABLE, AND DIGITAL GROWTH OF DIGITAL PILOTS 10 Over the last several years, non-traditional programming available During the 2011-12 cycle, just one pilot tracked by FIlmL.A. from online services like Amazon© and Netflix© began altering the was produced for a digital network. By comparison, there were concept of broadcast television in terms of how they acquire content, 26 pilots produced for digital networks in 2014-15. Leading 0.2 the manner in which they deliver it and how viewers consume it. the digital networks was Amazon, with 13 pilots followed by 0 Netflix5 (10 pilots), Hulu© (2 pilots) and PlayStation™ Network 0.0Since the 2007-08 development2004-5 cycle, FilmL.A.2005-6 has included2006-7 in its 2007-8(1 pilot).2008-9 Of the 176 non-digital2009-10 pilots,2010-11 85 were cable2011-12 pilots and 2012-13 2013-14 2014-15 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Television Pilot Production Reports a breakout of broadcast network 91 were network. vs. cable pilot projects. Because digital networks were not major players at that time, FilmL.A. initially counted digital projects as cable 0 series, starting with the 2011-12 development cycle. Today, however, 0.0 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Digital Pilots vs. Network and Cable Pilots rapid growth in the production of new pilots for digital distribution, 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 demands we count cable projects and digital projects separately. 250 DIGITAL VS. TRADITIONAL PILOT COUNTS From this report forward, FilmL.A.’s Pilot Production Reports will Digital Pilots vs. Network and Cable Pilots Network & Cable include breakouts for broadcast, cable and digital networks. 250 Network / Cable Network & Cable Digital L.A.’s Share of Total Drama Pilots Produced L.A.’s Share of Total Drama Pilots Produced 200 Digital Digital Network Share of Pilot Activity 192 200 Digital Digital Network Share of Pilot Activity 176 DIGITAL NETWORK SHARE OF PILOT ACTIVITY 80 192 176 80 178 178 1515% 70 15 70 150 150 151 60 63% 151 12 13% 12% 60 12 13% 63% 50 100 9 50% 50 40 100 99% 50% 38% 38% 6 30 5040 29% 5% 25% 6% 38% 3 38%4% 20 22% 6 1 26 19% 30 8 11 17% 50 0 29% .6% 10 2011-12 2012-13 2013-14 2014-15 0 5% 2011-12 2012-13 2013-14 2014-15 3% 25% 3 4% 20 0 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 1 26 The past year also saw a major development impacting the 22% digital network universe with the announcement that premium 19% 11 ® ® 17% 8 .6% cable network channels HBOTop and Pilot Showtime Locations would begin 0 offering10 stand-alone subscription options for people who 2011-12 2012-13 2013-14 2014-15 0% 0 200consume content online and a growing number of consumers 2011-12 2012-13 2013-14 2014-15 electing to “cut the cord” on television providers like Comcast© and Time0 Warner©. With a network like HBO operating a standalone digital service2006-7 with original programming2007-8 options2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Los Angeles’ Share of Pilot Spending and rates comparable to Netflix or Amazon, it now operates Comedy Pilot Locations 8 as a digital network player and a traditional cable television 9 50 Top Pilot Locations 150network. The distinction between the two mediums6 is 17 16 meaningless in this example. As more and more15 broadcast and 3 6 cable networks follow what HBO, Showtime, CBS© and others 8 46% 200 7 10 5 4% are doing, the8 distinction between network,2 cable and digital 40 increasingly will not matter.1 100 87 92 96 90 91 39% Los Angeles’ Share of Pilot Spending 8% Comedy Pilot Locations 30 8 4% 31% 9 50 30% 150 6 17 50 3 16 12 15 20 6 9 8 5 5 9 46% 7 10 4% 7 8 2 70% 17 20 19 40 35 25 1 0 10 100 87 92 96 90 91 8% 2010-11 2011-12 2012-13 2013-14 2014-1539%

Toronto 30 0 4% 31% 2011-12 2012-13 2013-14 2014-15 30% 2014-15 Vancouver 50 4 12 20 9 Louisiana Oregon 9 7 5 70% South Carolina 17 20 19 35 25 Los Angeles 0 2010-11 2011-12 2012-13 2013-14 2014-15 10 Atlanta North Carolina

New York Chicago Toronto 0 2011-12 2012-13 2013-14 2014-15 2014-15 Vancouver

Louisiana Oregon

Los Angeles South Carolina

Atlanta North Carolina

New York Chicago Total Pilots Produced in N.Y. and Atlanta 2008-2015 L.A.’s Share of Total Pilots Produced

35 1.0

30

0.8 81% 82% 25 71% 68%

0.6 61% 20 59% 57% 51% 52% 15 45% 0.4 44% 10 DRAMA PILOTS 0.2 In 2014-15, the Los Angeles region captured 19 percent of all drama pilots, a modest improvement over its 17 percent share in the prior cycle. Despite this slight improvement, L.A.’s 5 share was still down 70 percent from the peak in 2006-07, when L.A.’s drama share was a commanding 63 percent.

0 0.0 In the 2014-15 cycle, the ratio of drama pilots filmed outside L.A. was 4-to-1. Put another way, 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2004-5 2005-6 2006-7 2007-8 2008-9for 2009-10every drama2010-11 pilot2011-12 that shot2012-13 in L.A.2013-14 four others2014-15 filmed outside the region. Much like feature films, pilot projects are often produced in jurisdictions were tax incentives are available. The Greater Los Angeles Region’s considerable loss of pilot production share is directly tied to Digital Pilots vs. Network and Cable Pilots incentive-fueled competition. 250 Network & Cable L.A. SHAREL.A.’s OF ShareTOTAL DRAMA of Total PILOTS DramaPRODUCED Pilots Produced 200 Digital Digital Network Share of Pilot Activity 80% 192 176 80 178 15 7070% 150 151 60% 12 13% 60 63% 5050% 100 9 50% 4040% 38% 38% 6 3030% 50 29% 5% 20% 25% 3 4% 20 22% 1 26 19% 11 10% 17% 0 8 .6% 10 2011-12 2012-13 2013-14 2014-15 0 2011-12 2012-13 2013-14 2014-15 0% 0 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Top Pilot Locations 200 COMEDY PILOTS L.A.’s share of comedy pilots produced in 2014-15 was 77 percent compared to 76 percent in Los Angeles’ Share of Pilot Spending the previous cycle and substantially lower than the 91 percent share in 2011-12. The raw number Comedy Pilot Locations 8 of comedy pilots produced in L.A. was 70 in 2014-15 compared to 71 in the previous cycle. 9 50 150 6 17 16 15 3 L.A.’s status as the premier pilot production center continues to hinge on industry willingness 6 8 46% 7 10 5 4% to produce comedy projects in Los Angeles. Until recently, generous film incentives in other 8 2 40 1 locations have not been successful at siphoning comedy production from L.A. An exception to 100 87 92 96 90 91 that rule was New York. However, after four39% straight years of growth, New York declined for the 8% first time in five years, with 8 comedy pilots in 2014-15 compared to a record high of 11 comedy pilots in the prior cycle.30 4% 30% 31% The remaining 13 comedy pilots that filmed outside of L.A. or New York shot in seven other 50 12 locations, with Vancouver and Atlanta leading the pack at four comedy pilots apiece. 20 9 9 7 5 Multi-camera, stage-bound comedies, which L.A. has been able to retain in great numbers, 70% cost up to $1.5 million to produce per episode. In 2014-15, there were 35 multi-camera 17 20 19 35 25 pilots produced (31 in L.A.). By comparison, in 2013-14, there were 40 multi-camera pilots 0 10 2010-11 2011-12 2012-13 2013-14 2014-15 produced (37 in L.A.). Creative reasons, as opposed to economic reasons, presently keep these productions in Los Angeles.

Toronto Single-camera comedies0 that regularly shoot on-location cost slightly more to make, up to $2.0 million per episode. In 2014-15,2011-12 there were2012-13 56 single-camera2013-14 pilots2014-15 produced (39 in L.A.). By 2014-15 Vancouver comparison, in 2013-14 there were 52 single-camera pilots produced (33 in L.A.).

Louisiana Oregon

Los Angeles South Carolina

Atlanta North Carolina

New York Chicago

5 California Dramas: Network Vs. Cable Drama Straight to Series Orders California Based Dramas

57 30 60 2 55 7 Digital Dramas 60 52 53 57 50 47 48 25 10 45 Cable Dramas 50 11 22 45 2 11 18 12 20 45 12 40 Network Dramas 40 43 41 38 18 37 THE MAINSTREAMING OF “STRAIGHT-TO-SERIES” PRODUCTION 35 31 15 30 33 30 30 As the initial episode of a proposed series, many pilots are made, but only a few will ever be shown to viewers. 31 Before many pilots can be green-lighted for series, it must first be deemed marketable to television advertisers and foreign distributors. 27 27 26 26 26 27 24 25 For decades, broadcast networks have courted advertisers in an expensive and seasonally-driven22 “upfronts” 10 2 20 20 process. Every year in late May, advertisers preview20 the shows that will go on to be aired on broadcast 19 networks in the fall or early the following year as mid-season replacements.19 10 7 15 Cable and digital networks also screen a variety of scripted content. Unlike network pilots, cable pilots are produced year-round and have increased in number to contribute mightily to development cycle yields. New 6 1 10 cable and digital series debut throughout the year. 5 10 5 5 Unlike network and cable networks, the top two digital network players (Amazon and Netflix) are not beholden to advertisers or the “upfronts” process. 1 1 2 1 0 Amazon selects which pilots receive full series orders based in large part on the number of times a show is 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 0 0 streamed and the percentage of viewers who finish the pilot. Unlike network television, there are no commercial 2010-11 2011-12 2012-13 2013-14 2014-15 2008-09 2009-10 interruptions2010-11 on Amazon and2011-12 advertiser influence2012-13 is effectively taken2013-14 out of the equation. 2014-15 2015-16

Unlike Amazon, the original programming on Netflix has all been straight-to-series orders. Rather than release episodes on a weekly basis like traditional network or cable broadcasts, Netflix makes all episodes available at Incentivised one time, which also takes advertisers out of the equation.

If adapting to a new era of broadcasting (where the lines between television and online digital networks are increasingly blurred) means adopting the practice of ordering more shows straight-to-series, a review of Non-Incentivised FilmL.A.’s historical data suggests the 2014-15 cycle marks year two of the new era. A total of 37 network and cable shows were ordered straight-to-series in the 2014-15 cycle, which is just one less than the prior cycle. In the last two cycles, there were three times as many shows ordered straight-to-series than in the three prior years combined.

Comedy Straight to Series Orders STRAIGHT-TO-SERIESStraight to SeriesORDER (DRAMA Order & COMEDY) (Drama & Comedy) 40 8 Digital Digital Comedy 2 7 35 12 Cable Comedy Cable 6 5 30

5 5 Network Comedy Network 25 23

4 20 3 19 15 2 2 13 3 1 10 1 7 8 1 1 1 1 5 6 6 0 Digital 2010-11 2011-12 2012-13 2013-14 2014-15 Cable 2 0 1 Network 2010-11 2011-12 2012-13 2013-14 2014-15

6 Network & Cable Straight to Series Orders (Comedy & Drama) Digital Pilots 40 30 1/2 hour 35 25 30 1 hour 25 20 20 15 15 10 10

5 5 0 2010-11 2011-12 2012-13 2013-14 2014-15 0 2011-12 2012-13 2013-14 2014-15 Looking at the trends for drama and comedy series orders reveals other patterns. When it comes to drama projects, cable and digital networks have been more aggressive than the traditional networks in each of the last five cycles. In the last two cycles, the number California Dramas: Network Vs. Cable Drama Straight to Series Orders Californiaof dramas ordered Based straight to Dramasseries for cable and digital outpaced network orders by a 3-1 margin. The seven digital drama orders in 2014-15 outnumber drama pilots ordered by digital networks in the prior three cycles combined. By comparison, the five network 57 30 drama orders in 2014-15 represent a 50 percent decrease from the prior60 year. 2 55 7 Digital Dramas California Dramas: Network Vs. Cable 60 Drama Straight to Series Orders 52 53 California Based Dramas DRAMA STRAIGHT-TO-SERIES ORDERS 57 50 47 48 25 10 45 Cable Dramas 57 5030 11 22 45 60 2 2 55 11 7 Digital Dramas 18 60 53 12 20 52 45 12 40 Network Dramas 40 43 57 50 47 48 25 41 38 18 10 45 Cable Dramas 50 11 22 45 37 2 35 18 31 15 11 30 33 30 30 12 31 20 27 45 12 40 Network Dramas 27 26 26 27 40 43 25 26 41 38 18 24 22 10 2 37 20 20 20 19 19 10 35 31 15 30 33 30 30 7 31 15 27 27 6 26 26 26 27 10 1 24 25 10 5 22 10 2 5 5 20 20 20 19 19 10 7 1 1 2 15 0 1 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 0 6 1 0 10 5 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2010-11 2011-12 2012-13 2013-14 2014-15 10 5 5 Digital Cable 1 1 Incentivised 2 0 1 Network 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 0 0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2010-11 2011-12 2012-13 2013-14 2014-15 Non-Incentivised Incentivised When it comes to comedy, network and cable networks did not place a priority on ordering shows straight to series during the past cycle. Filling the void in 2014-15 were the digital networks, which ordered five comedies straight to series compared to just one apiece for network and cable. Non-Incentivised COMEDYComedy STRAIGHT-TO-SERIES Straight to Series ORDERS Orders Straight to Series Order (Drama & Comedy) 40 8 Digital Digital Comedy 2 Comedy Straight to Series Orders Straight to Series Order (Drama & Comedy) 7 35 40 12 8 Cable Digital Cable Comedy 2 6 Digital Comedy 5 30 7 35 12 5 5 Network Comedy Network Cable Comedy Cable 25 23 6 5 30 4 5 5 Network Comedy Network 20 25 23 3 19 4 15 20 2 19 2 13 3 3 1 10 15 1 Digital Cable 7 8 2 1 1 1 1 2 13 5 6 3 1 10 0 Network 6 1 2010-11 2011-12 2012-13 2013-14 2014-15 2 7 8 1 1 1 1 1 0 5 6 7 2010-11 2011-12 2012-13 2013-14 2014-15 0 6 2010-11 2011-12 2012-13 2013-14 2014-15 2 0 1 2010-11 2011-12 2012-13 2013-14 2014-15 Network & Cable Straight to Series Orders (Comedy & Drama) Digital Pilots Network & Cable Straight to Series Orders (Comedy & Drama) 40 30 Digital Pilots 1/2 hour 40 30 35 1/2 hour 25 35 30 1 hour 25 30 25 1 hour 20 25 20 20 15 20 15 15 15 10 10 10 10 5 5 5 5 0 2010-11 2011-12 2012-13 2013-14 2014-15 0 0 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 0 2011-12 2012-13 2013-14 2014-15 8 Total Pilots Produced in N.Y. and Atlanta 2008-2015 L.A.’s Share of Total Pilots Produced

35 1.0

30

0.8 81% 82% 25 71% 68%

0.6 61% 20 59% 57% 51% 52% 15 45% 0.4 44%

10 0.2 5

0 0.0 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Digital Pilots vs. Network and Cable Pilots 250 Network & Cable L.A.’s Share of Total Drama Pilots Produced 200 Digital Digital Network Share of Pilot Activity 192 176 Total Pilots Produced80 in N.Y. and Atlanta 2008-2015 L.A.’s Share of Total Pilots Produced 178 15 70 150 35 151 PILOTS’ ECONOMIC IMPORTANCE 1.0 12 13% 60 63% Pilot production50 is worthy of study because the activity creates significant economic benefits for 100 9 30 the hosting region. The average one-hour50% drama pilot can directly employ 150-750+ people for the duration of40 the project.

38% 0.8 38%81% 82% 6 Typical pilot production30 costs, having risen over the years, now average about $2 million (for 50 29% 25 5% comedy pilots) and $6 million to $9 million (for drama pilots). Presentations, which are sometimes made in lieu of pilots, cost up to 40 percent less to produce than full-length25% pilots. 3 4% 20 22% 71% 1 26 68% 19% 11 17% 0 8 .6% Based on these10 figures, FilmL.A. estimates that approximately $298 million was spent on 2011-12 2012-13 2013-14 2014-15 0 television pilot production in Los Angeles during the 2014-15 development0.6 cycle, an increase 61% 2011-12 2012-1320 2013-14 2014-15 59% over the $290 million spent in L.A. during the previous cycle. This is roughly 30 percent of the 57% 0 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 total amount spent by producers in all locations. 51% 52% Top Pilot Locations 15 44% 45% 200 LOS ANGELES0.4 SHARE OF PILOT PRODUCTION SPENDING Los Angeles’ Share of Pilot Spending 10 Comedy Pilot Locations 8 9 50 150 6 17 16 15 3 0.2 6 8 46% 7 10 5 5 4% 8 2 40 1 100 87 92 96 90 91 8% 39% 0 30 0.0 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 4% 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 30% 31% 50 12 Digital Pilots vs. Network and Cable Pilots 20 9 250 9 7 5 70% Network & Cable 17 20 19 35 25 0 L.A.’s Share of Total Drama Pilots Produced 2010-11 2011-12 2012-13 2013-14 2014-15 200 Digital10 Digital Network Share of Pilot Activity 192 176 80 178 15 70 Toronto 0 150 2011-12 2012-13 2013-14 2014-15 151 60 63% 2014-15 12 13% Vancouver 50 100 TOP PILOT PRODUCTION LOCATIONS 9 50% Louisiana Oregon 40 38% 38% During the 2014-15 development cycle, 91 television pilots were filmed on Los 6Angeles streets and stages. 50 However, 111 other pilots — of which 90 were coveted one-hour drama projects — were produced outside 30 Los Angeles South Carolina 29% the region in competing jurisdictions. The availability of financial production incentives and production 5% 25% 3 4% 20 22% infrastructure1 are key factors influencing26 where pilot producers choose to film. As in prior years, some form of 19% film production incentive8 was11 available in every one of the non-California locations used during the 2014-15 17% Atlanta 0 North Carolina .6% development cycle. 10 2011-12 2012-13 2013-14 2014-15 0 2011-12 2012-13 2013-14 2014-15 0 New York AfterChicago L.A., the top competitors for pilot production in 2014-15 were New York (25 pilots), Vancouver (16 pilots), 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 Atlanta (9 pilots), Toronto (9 pilots) and Louisiana (8 pilots). No other location hosted more than five pilots. Top Pilot Locations

200 One piece of good news for L.A. in 2014-15 is that, with the exception of Toronto and Louisiana, the other Los Angeles’ Share of Pilot Spending top competitors saw a declineComedy in Pilot Locations 8 9 the number of pilots produced. 50 150 6 17 16 New York and Georgia, which were 15 3 6 both featured in last year’s pilot 8 46% 7 10 5 study because of their remarkable4% 8 2 40 1 growth, saw declines of 29 and 33 100 87 92 96 90 91 percent respectively. 8% 39% 30 4% 30% 31% 50 12 Toronto Los Angeles 20 9 9 Vancouver Georgia 7 5 Louisiana New York 70% 17 20 19 35 25 0 2010-11 2011-12 2012-13 2013-14 2014-15 10

9 Toronto 0 2011-12 2012-13 2013-14 2014-15 2014-15 Vancouver

Louisiana Oregon

Los Angeles South Carolina

Atlanta North Carolina

New York Chicago SERIES VS. PILOT Rosewood PRODUCTION LOCATIONS Florida

The Glades The diagram to the right demonstrates Georgia the change of locations once a pilot is Franklin & Bash Detroit 187 converted to a series. Only relocated Quantico series are depicted. The Following 22 Los Angeles Revolution

Crisis Los Angeles, CA Devious Maids Fear the Walking Dead Lucifer The Whispers Wonderland New Mexico The Originals Louisiana The Magicians Michigan

Chicago Chasing Life Massachusetts Louisiana

Hung 3 Georgia Michigan 12 Monkeys

Vegas Florida New Mexico North Carolina

State of Affairs New York The Ringer Prime Suspect Masters of Sex 6 New York Twisted Ironside Suits The Tomorrow People

Revenge North Carolina Hart of Dixie Witches of the East End 12 Vancouver, Canada

How to Get Away With Murder Pennsylvania Justified

Montreal, Canada Man in the High Castle Seattle, WA

4 Toronto, Canada Good Christian Bells Texas The Catch Astronaut Wives Club Killer Women Frankenstein Code

Vampire Diaries Vancouver, Canada Pretty Little Liars

PILOTS Intelligence Agent X Heartbreaker The Good Wife Running Wild The Family Beauty and the Beast

Zero Hour Montreal, Canada

King & Maxwell Toronto, Canada Perception Blue Bloods Fringe Falling Skies Minority Report

Reign Ireland

10 Rosewood Florida

The Glades Georgia Franklin & Bash Detroit 187 Quantico The Following 22 Los Angeles Revolution

Crisis Los Angeles, CA Devious Maids Fear the Walking Dead Lucifer The Whispers Wonderland New Mexico The Originals Louisiana The Magicians Michigan

Chicago Chasing Life Massachusetts Louisiana

Hung 3 Georgia Michigan 12 Monkeys

Vegas Florida New Mexico North Carolina

State of Affairs New York The Ringer Prime Suspect Masters of Sex 6 New York Twisted Ironside Suits The Tomorrow People

Revenge North Carolina Hart of Dixie Witches of the East End 12 Vancouver, Canada

How to Get Away With Murder Pennsylvania Justified

Montreal, Canada Man in the High Castle Seattle, WA

4 Toronto, Canada Good Christian Bells Texas The Catch Astronaut Wives Club Killer Women Frankenstein Code

Vampire Diaries Vancouver, Canada Pretty Little Liars Intelligence Agent X Heartbreaker The Good Wife Running Wild The Family Beauty and the Beast

Zero Hour Montreal, Canada

King & Maxwell SERIES Toronto, Canada Perception Blue Bloods Fringe Falling Skies Minority Report

Reign Ireland RUNAWAY SERIES PRODUCTION Pilot producers’ ongoing wanderlust introduces a pair of related concerns for those who work in television in L.A. On one hand, lost production share carries with it the threat of diminished pilot season spending. But another, more serious, concern is that the one-time loss of a pilot can easily lead to the loss of a promising series.

In decades past, pilots made in Los Angeles were highly likely to stay in the region if picked up for series production. However, today, both pilot and series production occurs all over the place. In the recent cycle, two pilots that both filmed in L.A. and are set here (Fear the Walking Dead and Lucifer) are shooting the first season of their respective series in Vancouver. Another show that filmed its pilot in Texas and is set in L.A. Frankenstein( Code) is moving to Vancouver as well.

FilmL.A. examined 73 new drama series (many of which are now canceled) that have been produced in L.A. since 2010. Of those dramas, 47 (64 percent) also filmed their pilot episodes in California and 25 (34 percent) relocated after shooting their pilots in other locations. Of the 25 shows that had their pilots and / or initial seasons produced outside California, 12 were induced to relocate by the availability of the California Film & Television Tax Credit (highlighted in yellow).

A final point on relocating series is worth noting. After exhaustive review of past series (regardless of where they filmed their pilots), FilmL.A. Research found 20 examples of shows that relocated after filming one or more seasons in a given location (see page 13).

LOS ANGELES DRAMA SERIES, SINCE 2010

Series Pilot Location Series Pilot Location Franklin & Bash Georgia Scorpion Los Angeles Teen Wolf Georgia SHIELD Los Angeles Hindsight Georgia Snowfall Los Angeles Legends Los Angeles Stalker Los Angeles American Crime Story Los Angeles Stitchers Los Angeles American Horror Story Los Angeles Supergirl Los Angeles Aquarius (January 2015) Los Angeles Switched at Birth Los Angeles Battle Creek Los Angeles The Brink Los Angeles Bosch Los Angeles The Wedding Band Los Angeles Bunheads Los Angeles Touch (Mid-Season) Los Angeles Code Black Los Angeles Utopia Los Angeles Colony Los Angeles The Fosters Los Angeles Crazy ExGirlfriend Los Angeles Westworld Los Angeles Criminal Minds Beyond Borders Los Angeles Wicked City Los Angeles CSI: Cyber Los Angeles Chasing Life Massachusetts Extant Los Angeles Rosewood Miami Full Circle Los Angeles Hart of Dixie North Carolina Gang Related (Mid-Season) Los Angeles Revenge North Carolina Harry's Law Los Angeles Secrets and Lies (relocating to LA) North Carolina Hit The Floor Los Angeles Masters of Sex NY Hollywood Heights Los Angeles Ironside NY Jane by Design Los Angeles State of Affairs NY Jane the Virgin Los Angeles Twisted NY Major Crimes Los Angeles How To Get Away With Murder Pennsylvania Marvel's Agent Carter (Mid-Season) Los Angeles Body of Proof Rhode Island Matador (2015) Los Angeles The Last Ship San Diego Mistresses (Mid-Season) Los Angeles The Catch Texas Murder in the First Los Angeles The Bridge Texas Navy Street Los Angeles The Lying Game Texas News Room Los Angeles Perception Toronto Nine Lives Los Angeles Agent X Vancouver Ray Donovan Los Angeles Heartbreakers Vancouver Recovery Road Los Angeles Pretty Little Liars Vancouver Rizzoli & Isles Los Angeles Intelligence Vancouver Rush Hour Los Angeles King & Maxwell Toronto Scandal (Mid-Season) Los Angeles Justified Pennsylvania

12 Out of 20 studied shows that date back to the 1980s, six shows relocated after just one season and six shows relocated after two. Put another way, for shows that have relocated after shooting a season or more in one place, 67 percent had only filmed one or two seasons before relocating. Four series relocated after three or four seasons in a given location and just two series relocated after shooting five or more seasons in one place.

From a historical perspective, it seems clear that shows are much less likely to relocate after shooting more than one season in any given location.

NOTABLE TV SERIES RELOCATIONS, SINCE 1987

Series Original Location Relocation Destination(s) Reason for Move

Baywatch Los Angeles, seven seasons (1988-1998) Hawaii, two seasons (1999-2001) Incentives

X-Files Vancouver, five seasons (1993-1997) Los Angeles, four seasons (1998-2001) Family reasons for cast (Pilot shot in LA) Veep Baltimore, four seasons (2012-2015) Los Angeles, ongoing (2015) Incentives

Spin City New York, four seasons (1997-2000) Los Angeles, two seasons (2000-2002) Cast

Banshee North Carolina, three seasons (2012- Pennsylvania, ongoing (2015) Incentives in Pennsylvania 2015) after North Carolina incen- tive program curtailed Homeland North Carolina, three seasons (2011- South Africa, one season (2014); Germany, Creative/setting 2013) one season (2015) American Horror Story Los Angeles, two seasons (2011-2013) New Orleans, two seasons (2013-2014); Incentives Los Angeles (2015) Teen Wolf Georgia, two seasons (2011-2012) Los Angeles, ongoing (2013-current) Incentives

Sleepy Hollow North Carolina, two seasons (2012-2014) Georgia, ongoing (2015) Incentives in Georgia after North Carolina incentive program curtailed Mistresses Los Angeles, two seasons (2012-2014) Vancouver, ongoing (2015) Incentives

Ugly Betty Los Angeles, two seasons (2006-2008) New York, two seasons (2008-2010) Creative/incentives (Pilot shot in NY) MacGyver Los Angeles, two seasons (1985-1987) Vancouver, four seasons (1987-1991); Los Currency savings/creative Angeles, one season (1991) Revolution North Carolina, one season (2012/13) Texas, one season (2013/14) Creative/incentives (Pilot shot in Atlanta) The Leftovers New York, one season (2013/14) Texas, ongoing (2015) Creative

Body of Proof Rhode Island, one season (2011) Los Angeles, two seasons (2011-2013) Incentives

Secrets and Lies North Carolina, one season (2014) Los Angeles, ongoing (2015) Incentives

Hindsight Georgia, one season (2014) Los Angeles, ongoing (2015) Incentives

Falling Skies Toronto, one season 2010) Vancouver four seasons (2011-2015) Creative/incentives

Fringe New York, one season (2008) Vancouver, four seasons (2008-2012) Incentives

Monk Toronto, one season (2004) (Pilot shot in Los Angeles, seven seasons (2005-2010) Creative Vancouver)

13 THE CURRENT DRAMA SERIES LANDSCAPE IN LOS ANGELES The good news for California is that the number of one-hour scripted drama series shooting in the state stands at 53, the best showing in five years. Local network drama production is increasing, while cable drama production is holding steady.

CALIFORNIA DRAMAS:California NETWORK Dramas: Network VS. CABLE Vs. Cable Drama Straight to Series Orders California Based Dramas TOTAL 57 30 60 55 2 Network 7 Digital Dramas 60 52 53 Cable 57 50 47 48 25 10 45 Cable Dramas 50 11 22 45 Digital 2 11 18 12 20 45 12 40 Network Dramas 40 43 41 38 18 37 35 31 15 30 33 30 30 31 27 27 26 26 26 27 24 25 22 10 2 20 20 20 19 19 10 7 15 10 5 6 1 10 5 5

1 1 2 0 1 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 0 0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2010-11 2011-12 2012-13 2013-14 2014-15

Incentivised California can credit the reversal of fortune in large part to the California Film & Television Tax Credit Program, including the expansion of the program that passed Non-Incentivised last year. Under the new version of the program, dubbed 2.0, eligibility has been expanded to drama series regardless of where it is broadcast and now includes network, premium cable and digital channels. Under the old program, only new basic cable and relocating series were eligible for the incentive. Expanded with the new program, California will be hosting five network dramas, two premium cable dramas California Dramas: Network Vs. Cable Drama Straight to Series Orders Comedy Straight to Series Orders andCalifornia 15 new or returning Straight Basedbasic cable to Series dramas. Dramas Order (Drama & Comedy) 40 8 Digital Digital Comedy 2 7 CALIFORNIA BASED35 DRAMAS 57 30 12 60 2 Cable Comedy Cable 55 7 6 Digital Dramas 5 60 30 53 5 5 Network Comedy Network 52 25 23 4 57 47 48 25 20 10 The impact50 of these incentivized dramas Cable Dramas (and Veep, a comedy on premium cable) 45 3 50 11 19 22 45 15 is massive. According to spending and 2 employment data provided by the California 18 2 11 2 13 Film Commission, these 22 series will have a 3 1 10 12 20 1 45 12 direct production40 spend of $1.15 billion while Network Dramas 7 8 shooting their current/upcoming season. 1 1 1 1 40 43 5 6 38 0 41 6 18 2010-11 2011-12 2012-13 2013-14 2014-15 Assuming an average season budget of 1 2 0 $50 million for the remaining 31 cable and 2010-11 2011-12 2012-13 2013-14 2014-1537 35 network dramas based in California that are 31 15 30 33 not incentivized,30 the total annual production 30 31 spend for all 53 dramas in the state is a Network & Cable Straight to Series Orders (Comedy & Drama) 27 27 whopping $2.7 billion. To put that in context, 26 26 27 Digital Pilots 25 26 40 30 $2.7 billion is the equivalent of California 24 hosting production each year of (a) 25 San 1/2 hour 22 10 2 20 Andreas 20features; (b) 18 Jurassic World 20 35 features or (c) 14 Furious 7 features.19 19 10 25 7 30 151 hour 6 1 25 10 20 5 10 5 5 20 Non-incentivized 15 Incentivized 1 1 2 15 0 1 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 0 0 10 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2010-11 2011-12 2012-13 2013-14 2014-15 10 14

5 Incentivised 5 0 2010-11 2011-12 2012-13 2013-14 2014-15 0 Non-Incentivised 2011-12 2012-13 2013-14 2014-15

Comedy Straight to Series Orders Straight to Series Order (Drama & Comedy) 40 8 Digital Digital Comedy 2 7 35 12 Cable Comedy Cable 6 5 30

5 5 Network Comedy Network 25 23

4 20 3 19 15 2 2 13 3 1 10 1 7 8 1 1 1 1 5 6 0 6 2010-11 2011-12 2012-13 2013-14 2014-15 2 0 1 2010-11 2011-12 2012-13 2013-14 2014-15

Network & Cable Straight to Series Orders (Comedy & Drama) Digital Pilots 40 30 1/2 hour 35 25 30 1 hour 25 20 20 15 15 10 10

5 5 0 2010-11 2011-12 2012-13 2013-14 2014-15 0 2011-12 2012-13 2013-14 2014-15 STATE INCENTIVIZED CALIFORNIA BASED DRAMAS

Project Total CA Spend Cast * Crew Background Type Agent X $61,000,000 80 300 4380 Basic Cable American Crime Story $66,000,000 8 165 6091 Basic Cable American Horror Story $58,000,000 360 125 2670 Basic Cable Code Black $41,000,000 200 185 6060 Network Crazy Ex-Girlfriend $36,000,000 437 144 1452 Network Heartbreaker $44,000,000 15 250 4200 Network Hindsight $21,000,000 23 115 2115 Basic Cable Hit the Floor $36,000,000 28 115 6100 Basic Cable Major Crimes $68,000,000 21 171 2860 Basic Cable Murder in the First $44,000,000 72 240 3930 Basic Cable Pretty Little Liars $54,000,000 215 150 5340 Basic Cable Recovery Road $50,000,000 170 185 8364 Basic Cable Rizzoli & Isles $67,000,000 270 150 4194 Basic Cable Rosewood $40,000,000 331 125 2760 Network Secrets and Lies $35,000,000 128 185 1840 Network Snowfall (Pilot) $9,000,000 88 122 811 N/A Stitchers $51,000,000 190 185 7251 Basic Cable Switched at Birth $56,000,000 156 192 8325 Basic Cable Teen Wolf $60,000,000 20 130 5160 Basic Cable Utopia $117,000,000 575 169 15600 Premium Cable Veep $49,000,000 235 195 3050 Premium Cable Westworld $88,000,000 64 185 4896 Premium Cable TOTAL $1,151,000,000 3,686 3,783 107,449

* Over the course of a series, total talent jobs can include regular cast, recurring cast and guest roles. Source: California Film Comission (CFC)

CONCLUSION

As our decade of independent research reveals, the pilot production landscape in Greater Los Angeles has greatly changed over an unexpectedly short time. The ever-present availability of film incentives, first outside and then later in California, has made fierce jurisdictions’ ongoing competition for new television projects and jobs.

Also thanks to these incentives, television production budgets were observed to increase and help fuel a rise in on-screen production value, particularly for new drama pilots and drama series.

And at the same time, viewer demand for original content lured both cable and digital networks into the content creation business. The number of annual pilot projects in production doubled within a decade, driving state and local policy change to capture this increase in business.

And as for the genre we originally set out to track – “television pilots” – what are we to do with that term? As consumers enjoy content across a range of devices and screens, the industry has begun to question its assumptions about how episodic content is best vetted, sold and screened. We might not call always call the things we track “pilots,” or for that matter, call this part of the business “television”. But we at FilmL.A. Research remain committed to this work, and studying episodic content in all its forms.

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